Questions
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a...

On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Required:

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.
2. Journalize the entries to record the following:*
a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)
b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)
3. Determine the total interest expense for Year 1.
4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?
5. Compute the price of $37,282,062 received for the bonds by using the present value tables. (Round to the nearest dollar.)
*Refer to the Chart of Accounts for exact wording of account titles.

In: Accounting

. The Rangaletta Company issues a five-year, zero-coupon bond on January 1, Year One. The bond...

. The Rangaletta Company issues a five-year, zero-coupon bond on January 1, Year One. The bond has a face value of $200,000 and is issued to yield an effective interest rate of 9 percent. Rangaletta receives $129,986. On January 1, Year Three, Rangaletta pays off the bond early by making a payment of $155,000 to the bondholder. Make all journal entries from January 1, Year One, through January 1, Year Three assuming the effective rate method is applied. 6. Do problem 5 again but assume that the straight-line method is used.

In: Accounting

Hummus Company began operations on January 1, Year 1. Selected ending balances for Year 1 are:...

Hummus Company began operations on January 1, Year 1. Selected ending balances for Year 1 are:

Accounts receivable, $5,600

Allowance for doubtful accounts, $790

Hummus Company experienced the following events during Year 2:

              Earned $225,000 of revenue on account

              Collected $175,000 cash from accounts receivable

              Paid in advance a one-year lease for office rent, $12,000; rental period began May 1, Year 2

Salary expense was $45,000, of which $40,000 had been paid at the end of Year 2

              Operating expenses were $125,000, of which $100,000 had been paid at the end of Year 2

              Wrote off $2,000 of uncollectible accounts

Adjusted the accounting records to reflect management’s belief that 3% of sales on account will be

uncollectible. Hummus Company uses the allowance method for accounting for bad debts.

Collected $500 from accounts that had been previously written off

(3 points) Question 1 – What is Hummus Company’s net income for Year 2?

(3 points) Question 2 – What is the net realizable value that Hummus Company will report on its Year 2 balance sheet (after all adjusting entries have been made)?

In: Accounting

Private nonprofit four-year colleges charge, on average, $26,755 per year in tuition and fees. The standard...

Private nonprofit four-year colleges charge, on average, $26,755 per year in tuition and fees. The standard deviation is $6,752. Assume the distribution is normal. Let X be the cost for a randomly selected college. Round all answers to 4 decimal places where possible.

a. What is the distribution of X? X ~ N(

b. Find the probability that a randomly selected Private nonprofit four-year college will cost less than 25,013 per year.

c. Find the 66th percentile for this distribution. $ (Round to the nearest dollar.)

c. Find the 66th percentile for this distribution. $Incorrect (Round to the nearest dollar.) 29540

Please show step by step.

In: Statistics and Probability

C&P Trading Inc., is entering into a 3-year remodeling and expansion project. Last year, the company...

  1. C&P Trading Inc., is entering into a 3-year remodeling and expansion project. Last year, the company paid a dividend of $3.40. It expects zero growth in the next year. In years 2 and 3, and 5% growth is expected, and in year 4, and 15% growth. In year 5 and thereafter, growth should be a constant 10% per year. What is the maximum price per share that an investor who requires a return of 12% should pay for Home Place Hotels common stock?(15')
  1. Find the value of the cash dividends at the end of each year. 4'
  2. Find the present value of the dividends expected during the initial growth period.3'
  3. Find the value of the stock at the end of the initial growth period. 4'
  4. Find the value of the stock. (Sum of PV of dividends during initial growth period and PV price of stock at end of growth period) 4'

In: Finance

Private nonprofit four-year colleges charge, on average, $26,470 per year in tuition and fees. The standard...

Private nonprofit four-year colleges charge, on average, $26,470 per year in tuition and fees. The standard deviation is $6,683. Assume the distribution is normal. Let X be the cost for a randomly selected college. Round all answers to 4 decimal places where possible.

a. What is the distribution of X? X ~ N(,)

b. Find the probability that a randomly selected Private nonprofit four-year college will cost less than 30,818 per year.

c. Find the 74th percentile for this distribution. $ (Round to the nearest dollar.)

In: Statistics and Probability

C&P Trading Inc., is entering into a 3-year remodeling and expansion project. Last year, the company...

  1. C&P Trading Inc., is entering into a 3-year remodeling and expansion project. Last year, the company paid a dividend of $3.40. It expects zero growth in the next year. In years 2 and 3, and 5% growth is expected, and in year 4, and 15% growth. In year 5 and thereafter, growth should be a constant 10% per year. What is the maximum price per share that an investor who requires a return of 12% should pay for Home Place Hotels common stock?
  1. Find the value of the cash dividends at the end of each year. 4'
  2. Find the present value of the dividends expected during the initial growth period.3'
  3. Find the value of the stock at the end of the initial growth period. 4'
  4. Find the value of the stock. (Sum of PV of dividends during initial growth period and PV price of stock at end of growth period) 4'

In: Finance

C&P Trading Inc., is entering into a 3-year remodeling and expansion project. Last year, the company...

  1. C&P Trading Inc., is entering into a 3-year remodeling and expansion project. Last year, the company paid a dividend of $3.40. It expects zero growth in the next year. In years 2 and 3, and 5% growth is expected, and in year 4, and 15% growth. In year 5 and thereafter, growth should be a constant 10% per year. What is the maximum price per share that an investor who requires a return of 12% should pay for Home Place Hotels common stock?(15')
  1. Find the value of the cash dividends at the end of each year. 4'
  2. Find the present value of the dividends expected during the initial growth period.3'
  3. Find the value of the stock at the end of the initial growth period. 4'
  4. Find the value of the stock. (Sum of PV of dividends during initial growth period and PV price of stock at end of growth period) 4'

In: Finance

The annual sales for​ Salco, Inc. were $ 4.55 million last year. The​ firm's end-of-year balance...

The annual sales for​ Salco, Inc. were $ 4.55 million last year. The​ firm's end-of-year balance sheet was as​ follows: Current assets $499,000 Liabilities $1,001,500 Net fixed assets 1504000 Owners' equity 1001500 Total Assets $2,003,000 Total $2,003,000  LOADING.... ​ Salco's income statement for the year was as​ follows: Sales $4,550,000 Less: Cost of goods sold (3,506,000) Gross profit $1,044,000 Less: Operating expenses (495,000) Net operating income $549,000 Less: Interest expense (101,000) Earnings before taxes $448,000 Less: Taxes (35%) (156,800) Net income $291,200  LOADING.... a. Calculate​ Salco's total asset​ turnover, operating profit​ margin, and operating return on assets. b.  Salco plans to renovate one of its plants and the renovation will require an added investment in plant and equipment of $ 1.08 million. The firm will maintain its present debt ratio of 50 percent when financing the new investment and expects sales to remain constant. The operating profit margin will rise to 13.5 percent. What will be the new operating return on assets ratio​ (i.e., net operating income divided by total ​assets) for Salco after the​ plant's renovation? c.  Given that the plant renovation in part ​(b​) occurs and​ Salco's interest expense rises by $ 48 comma 000 per​ year, what will be the return earned on the common​ stockholders' investment? Compare this rate of return with that earned before the renovation. Based on this​ comparison, did the renovation have a favorable effect on the profitability of the​ firm? a.  Calculate​ Salco's total asset​ turnover, operating profit​ margin, and operatin

In: Finance

The following information indicates percentage returns for stocks L and M over a 6-year period: year...

The following information indicates percentage returns for stocks L and M over a 6-year period:

year stock L returns stock M returns
1 14.79% 20.57%
2 14.3% 18.19%
3 16.47% 16.2%
4 17.86% 14.43%
5 17.6% 12.53%
6 19.39% 10.98%

In combining [L−M] in a single portfolio, stock M would receive 60% of capital funds. Furthermore, the information below reflects percentage returns for assets F, G, and H over a 4-year period, with asset F being the base instrument: Year Asset F Returns Asset G Returns Asset H Returns

year asset F returns asset G returns asset H returns
1 16.23% 17.04% 14.1%
2 17.48% 16.33% 15.32%
3 18.11% 15.41% 16.2%
4 19.25% 14.1% 17.22%

Using these assets, you have a choice of either combining [F−G] or [F−H] in a single portfolio, on an equally-weighted basis.

Required: Calculate the absolute percentage difference in the coefficient of variation (CV) between the stock portfolio [L−M] and the portfolio which outlines the optimal combination of assets
.

In: Finance